KT 3-4-2013_Layout 1 - Kuwait Times

More documents

Recommendations

Info

LJUBLJANA: Slovenia’s central bank governor Marko Kranjec speaks during a press conference in Ljubljana yesterday. — AFP Slovenian CB slashes 2013 growth forecast LJUBLJANA: Slovenia’s economy will contract more than previously expected this year, the central bank said yesterday, forecasting gross domestic product to shrink by 1.9 percent. In its previous prediction, the central bank said the economy would contract by 0.7 percent. Slovenia will start a modest recovery in 2014, with 0.5-percent growth speeding up to 1.4 percent of GDP in 2015, the bank also said. Central bank governor Marko Kranjec, also a member of the European Central Bank’s governing body, warned however that: “Much will depend this and next year on what will the state do.” “Risks are high and a clear message that we want to stabilize the economic situation cannot be avoided,” he told journalists. In 2014, “much will still depend on the international environment but mainly on the domestic situation,” he added. The new centre-left government, appointed last month, has promised to continue implementing measures adopted by the previ- EXCHANGE RATES Commercial Bank of Kuwait US Dollar/KD .2770000 .2880000 GB Pound/KD .4300000 .4450000 Euro .3620000 .3780000 Swiss francs .2970000 .3160000 Canadian Dollar .2770000 .2920000 Australian DLR .2940000 .3010000 Indian rupees .0040000 .0068000 Sri Lanka Rupee .0020000 .0035000 UAE dirhams .0772190 .0779950 Bahraini dinars .7523200 .7598810 Jordanian dinar .3930000 .4110000 Saudi riyals .0720000 .0770000 Omani riyals .7375180 .7449300 Egyptian pounds .0370000 .0440000 CUSTOMER TRANSFER RATES US Dollar/KD .2843000 .2864000 GB Pound/KD .4323210 .4355140 Euro .3644300 .3671220 Swiss francs .2993260 .3015370 Canadian dollars .2793690 .2814330 Danish Kroner .0488760 .0492370 Swedish Kroner .0435620 .0438840 Australian dlr .2962260 .2984140 Hong Kong dlr .0366200 .0368910 Singapore dlr .2291820 .2308750 Japanese yen .0030170 .0030400 Indian Rs/KD .0000000 .0053060 Sri Lanka rupee .0000000 .0022660 Pakistan rupee .0000000 .0029210 Bangladesh taka .0000000 .0036790 UAE dirhams .0774340 .0780060 Bahraini dinars .7544120 .7599840 Jordanian dinar .0000000 .4050920 Saudi Riyal/KD .0758340 .0763940 Omani riyals .7387290 .7441860 Philippine Peso .0000000 .0070670 Al-Muzaini Exchange Co. ASIAN COUNTRIES Japanese Yen 2.987 Indian Rupees 5.283 Pakistani Rupees 2.906 Srilankan Rupees 2.251 Nepali Rupees 3.313 Singapore Dollar 229.280 Hongkong Dollar 36.787 Bangladesh Taka 3.614 Philippine Peso 7.009 ous government-including pension and labor reforms and a plan to create a socalled bad bank. At the same time, it says it plans to “soften” austerity measures aimed at cutting public sector spending. “We are still waiting for the government’s program to be presented shortly and hope it will help stabilize the situation,” Kranjec said. “The government... has to do whatever is necessary to stabilize the economic and financial conditions,” he added, urging Prime Minister Alenka Bratusek to “make it clear she is serious about such measures.” In its economic forecast last week, the government’s Macroeconomic Analysis and Research Institute (UMAR) also predicted a 1.9-percent contraction this year, followed by modest 0.2-percent growth in 2014. Last year, the economy contracted by 2.3 percent of GDP. On inflation, the central bank kept its forecast unchanged yesterday, predicting a 2.3-percent hike in consumer prices this year and by 1.4 percent in 2014. — AFP CBQ plans bond sale to boost capital DUBAI: Commercial Bank Of Qatar (CBQ), which is buying a majority stake in Turkish lender Alternatifbank, has picked two banks for a potential bond sale to boost its core capital, sources said. The sale of a capital-boosting bond, a rare move in the Gulf, would help assuage analysts’ concerns over CBQ’s capital position which have been exacerbated by its recent agreement to buy the controlling stake in Alternatifbank. CBQ, the Gulf state’s third-largest bank by market value, has hired Morgan Stanley Inc and Bank Of America Merrill Lynch for the issue of a Tier 1 bond, two sources familiar with the matter said, speaking on condition of anonymity as the matter is not public. CBQ declined to comment. Tier 1 capital is the main measure of a bank’s financial strength and Gulf banks will eventually be expected to comply with tighter Basel III global standards for Tier 1 ratios, which will be gradually introduced over the coming years. The sale of capitalboosting bonds is still rare in the Gulf but the trend has been growing in recent months with two UAE-based lenders, Abu Dhabi Islamic Bank and Dubai Islamic Bank selling sharia-compliant Tier 1 debt to shore up their capital ratios. CBQ has never sold a Tier 1 bond before but completed a $600 million tenyear Tier 2 bond in 2009 as part of a $1.6 billion two-part offering which, at the time, was the largest ever issue from an emerging market financial institution.One of the sources said CBQ was aiming to sell a benchmark-sized bond, which is typically at least $500 million in size. Dubai-based brokerage Arqaam Capital said in a March 26 note that the bank would need to raise fresh equity of about 4.8 billion Qatari riyals ($1.32 billion) in order to address its weak capital base. The broker expects CBQ to raise the capital through a combination of a Tier 1 bond sale and a rights issue. In March, CBQ agreed to buy a 70.8 percent stake in Alternatifbank, valued at $460 million based on Alternatif’s book value of $328 million at the end of December. The final price will be based on two times the Turkish lender’s book value as at June 30, 2013, the bank has said. In the Gulf region, CBQ owns a near- 35 percent stake in National Bank of Oman and 40 percent in United Arab Bank. — Reuters Thai Baht 9.730 Irani Riyal - transfer 0.271 Irani Riyal - cash 0.273 GCC COUNTRIES Saudi Riyal 76.150 Qatari Riyal 78.463 Omani Riyal 741.720 Bahraini Dinar 758.470 UAE Dirham 77.758 ARAB COUNTRIES Egyptian Pound - Cash 41.450 Egyptian Pound - Transfer 41.410 Yemen Riyal/for 1000 1.332 Tunisian Dinar 182.160 Jordanian Dinar 403.260 Lebanese Lira/for 1000 1.916 Syrian Lier 3.102 Morocco Dirham 33.821 EUROPEAN & AMERICAN COUNTRIES US Dollar Transfer 285.450 Euro 371.090 Sterling Pound 432.740 Canadian dollar 280.400 Swiss Franc 303.030 US Dollar Buying 284.250 GOLD 20 Gram 298.000 10 Gram 150.000 5 Gram 77.500 UAE Exchange Centre WLL COUNTRY SELL DRAFT SELL CASH Australian Dollar 301.98 300.000 Canadian Dollar 285.17 283.000 Swiss Franc 305.72 305.000 Euro 369.44 368.000 US Dollar 285.25 286.250 Sterling Pound 437.63 437.000 Japanese Yen 3.10 3.300 Bangladesh Taka 3.657 3.740 Indian Rupee 5.259 5.400 Sri Lankan Rupee 2.249 2.450 Nepali Rupee 3.293 3.450 Pakistani Rupee 2.963 2.980 UAE Dirhams 77.73 78.500 Bahraini Dinar 759.51 758.500 Egyptian Pound 41.29 41.300 Jordanian Dinar 406.37 413.000 BUSINESS BEIJING: A Chinese tanker loaded crude in Iran in March, according to shipping data and an industry official, the first time a China-flagged ship has transported Iranian crude since EU sanctions imposed last July stopped insurers covering the shipments. The United States and Europe imposed tough sanctions in 2012 that aim to choke Iran’s oil revenue and force the Islamic Republic to halt its disputed nuclear program. Unable to find insurance for its own vessels because of the sanctions, China has relied mainly on the National Iranian Tanker Company (NITC) to ship Iran’s crude to Chinese refineries over the past nine months. If China has put in place a system of insurance for its own vessels allowing them to participate in the trade again, the country’s refineries could boost imports. China is Iran’s largest trade partner and biggest oil client, buying around 440,000 barrels per day (bpd) in 2012. The Chineseowned supertanker Yuan Yang Hu, with capacity to carry 2 million barrels of crude, called at Iran’s Kharg Island on March 20-21 and is en route to China, shipping tracking data showed. The vessel is owned by Dalian Ocean, a subsidiary of state shipping giant China Ocean Shipping (Group) Company (COSCO). An official at COSCO’s general manager’s office said she was unaware of the matter and the company’s press official was not available for comment. Norwegian marine and energy insurance group Skuld said it provided protection and indemnity (P&I) cover - insurance for ocean going ships against pollution and injury claims - for the Yuan Yang Hu. “We insure ships on a yearly basis and do not usually know what particular activity a ship is engaged in at any one time,” Skuld said in a statement. “An owner is not obliged to inform Skuld about the trade he is conducting with the vessel.” Skuld said compliance with EU’s regulations was of the “utmost importance”. “Any member who falls within the scope of this exclusion or engages in activity which is contrary to any other provision in the insurance terms and conditions runs the risk of prejudicing their P&I cover,” it said. “The operation of the exclusion is automatic - the exclusion will apply without us being required to give notice to owners.” An industry official with knowledge of the shipment told Reuters separately that the tanker’s insurance and reinsurance had been arranged in China. He was unable to provide more details. “This is the first Chinese vessel (since the ban)... as one of the lifters got special approval from the authorities to lift Iranian oil on a trial basis,” said the official, who requested anonymity due to the sensitivity of the matter. “Insurance is also handled by the Chinese side.” Iran’s fleet has struggled to deliver oil to its biggest buyers China, India and South Korea, all of whom had to switch to Iranian vessels for delivery after the EU sanctions came into place. China’s Iranian imports fell 21 percent in 2012 from 2011 to 440,000 bpd partly due to shipping problems. The fall meant China qualified for an exemption to US sanctions, which require buyers of Iranian crude to continually reduce imports. Beijing has repeatedly stated its opposition to Omani Riyal 742.38 740.000 Qatari Riyal 78.77 78.500 Saudi Riyal 76.27 76.500 Dollarco Exchange Co. Ltd Rate for Transfer Selling Rate US Dollar 285.100 Canadian Dollar 284.185 Sterling Pound 435.515 Euro 367.425 Swiss Frank 300.234 Bahrain Dinar 754.810 UAE Dirhams 77.600 Qatari Riyals 78.255 Saudi Riyals 75.990 Jordanian Dinar 401.895 Egyptian Pound 41.253 Sri Lankan Rupees 2.254 Indian Rupees 5.250 Pakistani Rupees 2.895 Bangladesh Taka 3.626 Philippines Pesso 6.994 Cyprus pound 699.365 Japanese Yen 4.030 Thai Bhat 9.810 Syrian Pound 4.030 Nepalese Rupees 3.370 Malaysian Ringgit 91.985 Bahrain Exchange Company COUNTRY SELL CASH SELLDRAFT Europe British Pound 0.4267132 0.4357132 Czech Korune 0.0061866 0.0181866 Danish Krone 0.0449108 0.0499108 Euro 0.3607049 0.3682049 Norwegian Krone 0.0446604 0.0498604 Scottish Pound 0.4241508 0.4316508 Swedish Krona 0.0396009 0.0446009 Swiss Franc 0.2951579 0.3021579 Australasia Australian Dollar 0.2869837 0.2989837 New Zealand Dollar 0.2306706 0.2406706 Uganda Shilling 0.0001118 0.0001118 America Canadian Dollar 0.2736595 0.2826595 Colombian Peso 0.0001488 0.0001668 US Dollars 0.2833500 0.2856500 Asia Bangladesh Taka 0.0035948 0.0036498 Cape Vrde Escudo 0.0031691 0.0033991 Chinese Yuan 0.0449179 0.0499179 Eritrea-Nakfa 0.0165100 0.0196100 Al Mulla Exchange WEDNESDAY, APRIL 3, 2013 Chinese tanker loads Iran oil, first since July Insurance arrangements for tanker unclear unilateral sanctions outside of the United Nations, such as those imposed by the United States. But it qualified for an exemption anyway, after the shipping delays and a contract dispute led to the sharp fall in imports. COSCO’s chairman Wei Jiafu told Reuters last July, just weeks after the European insurance ban took effect, that the Chinese government could follow Japan’s example and provide insurance for Chinese tankers. Japan found a way around the EU ban last year when the government stepped in to provide $7.6 billion in coverage to tankers carrying Iranian crude bound for Japanese ports. Insurance companies use reinsurers to hedge their risk, and the reinsurance market is mostly based in Europe. The EU sanctions prevent those reinsurers from participating in transactions that facilitate Iranian crude exports. The same problem has also arisen in India for refiners seeking insurance for plants that process Iranian crude. China largest refiner Sinopec processes nearly all the Iranian crude imported into the country, which is shipped in by Sinopec’s trading arm Unipec and state trader Zhuhai Zhenrong Corp. Even without any new arrangement on insurance, oil traders have said deliveries have, since late 2012, “improved significantly” after NITC deployed old tankers and also took delivery of several new vessels from Chinese shipyards. In the first two months of 2013, China imported about 410,000 bpd of Iranian crude, 3 percent more than a year earlier, according to Chinese customs data. — Reuters Altimo’s $3.7bn bid undervalues Orascom DUBAI: Altimo is taking a cheap shot at Egypt’s Orascom Telecom Holding. The firm controlled by Russian billionaire Mikhail Fridman has offered to buy out minorities in the Cairo-listed operator, which has interests sprawling from Bangladesh to Canada. The bid values the firm at $3.7 billion, a 10 percent premium to the current market value. If a dispute with Algeria over Orascom’s most profitable asset, Djezzy, is resolved soon, that will look measly. The Russian firm is offering 70 cents for each Orascom share. Regional broker Prime Holding calculates that amount is equivalent to around half the multiple of EBITDA of recent transactions by Orascom, and a 20 percent discount to the operator’s sum of the parts. A higher valuation looks increasingly realistic amid signs that Algeria is ready to end the two-year-old dispute over Djezzy, which is independently valued at $6.5 billion and provides 60 percent of Orascom’s operating EBITDA. The move on Orascom, already half-controlled by Altimo subsidiary Vimpelcom, looks like a pre-emptive attempt by the Russian firm to capture more of the potential upside from Djezzy for itself. Investors were expecting Vimpelcom to lead a buyout - but only after the Djezzy dispute was settled. The reason for Vimpelcom’s parent making the move is unclear. Vimpelcom is busy reducing its net debt, but the $20 billion firm could afford to buy the shares it doesn’t already own and still hit its leverage targets for 2015, say analysts at Citi. Altimo may be planning a broader restructur- ing of its own telecoms interests or Vimpelcom could gain from the buyout in the future. Egypt’s regulator, which has delayed a number of M&A deals post-uprising for political reasons, should scrutinize the relationship between Altimo and Vimpelcom. Minority shareholders should be nervous. Orascom could be left with low liquidity without a delisting. France Telecom’s local unit Mobinil is already listed in Cairo with almost no free float. But the low-ball offer might not get far, especially as the government has recently introduced a new capital gains tax. Only those desperate to exit troubled Egypt will be tempted. Russia’s Altimo has submitted an application to tender an offer for Cairo-listed Orascom Telecom Holding, Egypt’s Financial Supervisory Authority said on March 31. The offer values the firm at 70 cents per share or $3.7 billion. Altimo owns more than half of Vimpelcom, which in turn owns 52 percent of Orascom. Vimpelcom has said it will not sell its stake under the offer. If the offer is approved by Egyptian regulators, the price will be converted into Egyptian pounds for locally-held shares based on the official exchange rate two days before the settlement. The Egyptian pound has lost 10 percent of its value since the start of 2013. —Reuters Qatar spending could fall after 2017: FM DUBAI: Qatar’s government budget spending is expected to stay at about this year’s level until 2017, after which it could drop, Qatari Finance and Economy Minister Youssef Kamal said yesterday. Qatar plans to boost government spending by 18 percent to 210.6 billion riyals ($57.8 billion) in the 2013/14 fiscal year that began on Monday, as it steps up a big infrastructure building program. “The budget of course until the year 2015 or 2017 will be the same level, but later on it could go down again because most of the infrastructure would be completed at that time,” said Kamal, speaking to reporters at a meeting of Arab finance ministers and central bankers in Dubai. Earlier, Qatar’s central bank said it planned to issue 3 billion riyals of conventional bonds and 1 billion riyals of sukuk in the local currency every quarter. Asked if this meant Qatar would become less active issuing international bonds, Kamal replied: “We are still open to the international market - it depends on opportunities and also on the level of debt to the GDP (gross domestic product). Today the foreign debt to GDP of the state of Qatar is around 12 percent. It’s nothing.” Asked about the possibility of a Qatari dollar sovereign bond issue this year, he said: “We study the international market and if there is a good opportunity we will be active within that opportunity.” —Reuters Guinea Franc 0.0000443 0.0000503 Hong Kong Dollar 0.0342580 0.0373580 Indian Rupee 0.0052050 0.0052699 Indonesian Rupiah 0.0000244 0.0000295 Jamaican Dollars 0.0028547 0.0038547 Japanese Yen 0.0029535 0.0031336 Kenyan Shilling 0.0032711 0.0035011 Malaysian Ringgit 0.0882472 0.0952472 Nepalese Rupee 0.0031376 0.0033378 Pakistan Rupee 0.0028723 0.0029123 Philippine Peso 0.0065441 0.0070141 Sierra Leone 0.0000730 0.0000760 Singapore Dollar 0.2258670 0.2318670 Sri Lankan Rupee 0.0019515 0.0022535 Thai Baht 0.0093454 0.0099454 Arab Bahraini Dinar 0.7512658 0.7597658 Egyptian Pound 0.0399153 0.0419453 Ethiopeanbirr 0.0129967 0.0194967 Ghanaian Cedi 0.1486950 0.1504850 Iranian Riyal 0.0000794 0.0000799 Iraqi Dinar 0.0001738 0.0002338 Jordanian Dinar 0.3973239 0.4048239 Kuwaiti Dinar 1.0000000 1.0000000 Lebanese Pound 0.0001752 0.0001952 Moroccan Dirhams 0.0215277 0.0455277 Nigerian Naira 0.0012152 0.0018502 Omani Riyal 0.7309380 0.7419380 Qatar Riyal 0.0778056 0.0785886 Saudi Riyal 0.0756400 O.0762800 Sudanese Pounds 0.0480305 0.0485805 Syrian Pound 0.0031875 0.0034076 Tunisian Dinar 0.1792045 0.1852045 UAE Dirhams 0.0763447 0.0777947 Yemeni Riyal 0.0012887 0.0013887 Currency Transfer Rate (Per 1000) US Dollar 284.800 Euro 369.200 Pound Sterling 436.250 Canadian Dollar 282.800 Japanese Yen 3.065 Indian Rupee 5.250 Egyptian Pound 41.250 Sri Lankan Rupee 2.253 Bangladesh Taka 3.619 Philippines Peso 6.978 Pakistan Rupee 2.896 Bahraini Dinar 758.250 UAE Dirham 77.600 Saudi Riyal 76.100 *Rates are subject to change
BUSINESS Ambani brothers bury hatchet with telecom deal MUMBAI: India’s billionaire Ambani brothers, who fought a very public feud for spoils of their father’s business empire, signed yesterday a $220-million deal in the first tangible sign of a corporate reconciliation. Reliance Jio Infocomm, the telecom unit of Mukesh Ambani-led Reliance Industries, signed the agreement with Reliance Communications, the flagship firm of the Anil Ambani group, to share their fibre-optic communications networks. The long rumored pact is the “first in an intended comprehensive framework of business co-operation” between Reliance Jio and RCom, to use each other’s infrastructure across Indian cities, the companies said. This will provide “optimal utilization of existing and future infrastructure of both companies on a reciprocal basis”, they added in separate but identical statements. There have been increasing signs of a warming of ties between the brothers since their fight for control of Reliance erupted after their rags-to-riches father, Dhirubhai, died in 2002 without leaving a will. “It is a positive sign that the brothers are keen to work together,” said a fund manager with a state-run brokerage firm, who asked to remain unnamed. The pair ended up splitting the Reliance group left by their father that was India’s most valuable listed company. After a protracted court case that saw their mother, Kokilaben, act as peacemaker, the brothers agreed to bury the hatchet and tear up a noncompetition agreement that prevented them from entering the same sectors. In 2011, Mukesh and Anil came together to dedicate a memorial to their father, and their mother declared the enmity over, telling reporters: “There is love between the brothers.” Tuesday’s agreement, while small in value, was the first tangible evidence of an end to the business rift between Mukesh, India’s wealthiest man, and his younger sibling Anil. News of the agree- OMAHA: Matthew Miller of Omaha shops for a car in Omaha, Nebraska. March turned out to be the best month for auto sales in at least six years in the US. — AP US factory orders up 3% in February WASHINGTON: US factories rose sharply in February from January on a surge in demand for volatile aircraft. The gain offset a drop in key orders that signal business investment. The Commerce Department said yesterday that factory orders increased 3 percent in February. That’s up 1 percent decline in January and the biggest gain in five months. The increase was due mostly to a jump in orders for commercial aircraft. Those orders rose 95.1 percent. Orders for motor vehicles and parts also increased 1.4 percent. Orders for all durable goods, which are products expected to last at least three years, jumped 5.6 percent. Orders for nondurable goods, such as processed food and clothing, rose 0.8 percent. Despite the gains, the report showed that a key measure of business investment plans fell. That could mean that some companies were worried in February about steep federal spending cuts that started on March 1. Core capital goods, which include machinery and equipment orders, fell 3.2 percent. Demand for construction machinery, turbines and generators all fell sharply. Orders for computers and electronic products rose slightly. Economists closely watch these orders because they signal business investment plans. Still, the decline followed a 6.7 percent surge in January, the largest in nearly three years. Analysts said that when aver- aging the two months, business investment orders showed a solid increase for the January-March quarter. Many expect the gains to resume this spring, helped by a stronger job market that has kept consumers spending. Consumers stepped up spending in February after their income jumped. The gain occurred even after Social Security taxes increased in January, reducing take-home pay for most Americans. Many economists raised their growth forecasts after the report was released. Some are predicting growth could increase to around 3 percent in the January-March quarter, up from 0.4 percent in the previous three months. Other data show that some companies may start to pull back because of the government spending cuts. The Institute for Supply Management reported Monday that US manufacturing activity expanded more slowly in March than February, held back by weaker growth in production and new orders. But factories did hire at the fastest pace in nine months, which was seen as an encouraging sign ahead of Friday’s report on employment in March. The economy has added an average of 200,000 jobs a month from November through February, which helped lower the unemployment rate in February to a four-year low of 7.7 percent. Economists predict a similar level of hiring in March. — AP Blue-chips help Dubai halt slump; Oman up MIDEAST STOCK MARKETS DUBAI: Dubai’s index rebounded from a twomonth low yesterday, although thin trading left investors unsure whether these gains marked the end of a recent downward trend. Most Middle East markets edged higher in lackluster trade. Dubai’s measure index climbed 1 percent. About 79 million shares traded, which was 58 percent higher than a day earlier, but still less than half the 2013 average of 177 million shares. “The market was very quiet so it’s very difficult to say this marks a change in trend,” said Sebastien Henin, portfolio manager at The National Investor. “Maybe some investors think the market has fallen enough.” The index has declined in four out of six sessions, reducing year-to-date gains to 13.6 percent. It is down 5.3 percent since Feb. 24’s 39month peak and has broadly followed a similar pattern to 2012 when an early-year surge gave way to a sustained slump from early March. But those bald numbers fail to show a crucial difference this year compared to last, said Henin. “Last year, it was speculative money coming into small- and mid-cap stocks that pushed the market higher, but this time it’s only about three or four large stocks - the quality names - that are responsible for most of the rally,” said Henin. Therefore the market can better hold onto its early-year gains as these are backed up by company fundamentals, with Emaar Properties, bank Emirates NBD and telecom operator du the main drivers of the rally. Emaar climbed 3 percent and Emirates NBD added 1 percent, but du fell 0.4 percent. All are up more than 30 percent this year.Oman’s index rose 0.7 percent to rebound from a five-week low. It is down 2.7 percent from March 26’s 22-month high. The recent slump was due to investors booking some early-year gains as well as many stocks going ex-dividend, said Adel Nasr, United Securities brokerage manager. Investors used these cash dividends to buy back stocks at lower prices, driving Tuesday’s rebound. “It’s speculation on first-quarter results,” said Nasr. “If earnings beat expectations I would expect the market to rally to the end of the year.” Many investors have targeted the likes of OM Invest and Oman National Investment Corp Holding (ONIC), because these companies invest in Gulf equities and so should benefit from a broadly positive regional trend this year. OM Invest and ONIC climbed 5.5 and 3.1 percent respectively. Saudi Arabia’s index rose for a sixth session in eight, but will remain in a sideways range as investors are unsure how best to profit from the country’s growing economy, which is forecast to expand 4 percent in 2013. “Saudi has one of the best stories from a macroeconomic perspective, but taking a position on that is trickier because the largest sector - petrochemicals - is not really related to the domestic economy,” said Henin. “People are hunting for domestic plays.” That would normally make consumer stocks a target, but these have already rallied, said Henin. Investors are also wary of banking stocks, Saudi’s other heavyweight sector, due to worries that provisions and tight net interest margins will constrain profit growth. Telecoms is attracting little interest - No.2 operator Mobily is near a six-year high and former monopoly Saudi Telecom Co has been making negative headlines after a second chief executive quit in less than a year last month and its fourth-quarter profit fell 79 percent. Egypt’s main share index fell 0.4 percent, its third straight decline, to slump to a 16week low. “Bearish momentum is slowing down,” wrote Pharos brokerage. — Reuters This combo of file pictures shows chairman and managing director of Reliance Industries Mukesh Ambani (left) and chairman of India’s Reliance Power Anil Ambani. — AFP ment heightened speculation among analysts about further collaboration between the brothers as well as about a DUBAI: Pressure for Oman to keep increasing its state spending every year is decreasing because the country has finished building most of the infrastructure it needs, finance minister Darwish Al-Balushi said yesterday. Speaking to reporters at a meeting of Arab finance ministers and central bank governors in Dubai, he said that in contrast to last year, Oman did not expect this year to spend more than it had originally budgeted. “As far as the budget is concerned, we have in this year’s budget taken all the anticipated expenditure to sustain the expected growth. We do see any unexpected expenditure to occur during the year,” he said. Asked whether it was sustainable for Oman to continue raising its spending over the medium term, he replied: “Not necessarily. It depends how oil prices will behave and also our level of production. “However, we think that most of our infrastructure has been completed, therefore we do not have pressure on increasing expenditure.” Balushi also said his government did not now plan to issue conventional bonds or sukuk this year. Oman’s central bank chief Hamood Sangour Al-Zadjali had said last month that the government was likely to issue its first sukuk, denominated in rials, towards the end of 2013 or at the start of next year. Meanwhile, Oman’s central bank has granted Islamic banks a one-year relaxation of rules on the amount of foreign assets which they can hold, to give time for Islamic financial instruments to be developed domestically. Oman’s first full-fledged Islamic banks, Bank Nizwa and Al Izz International Bank, were established late last year and are now starting to operate as the country introduces Islamic finance. Under rules announced by the central bank in December, the two banks can hold no more than 40 percent of their net worth in the form of foreign currency-denominated assets. This threatens to hurt their profitability, how- possible merger of the two Reliance telecom companies. RCom’s shares leapt as much as 17.2 percent to a high of ever, because Oman has not yet developed a market in sukuk (Islamic bonds) or other shariacompliant instruments which the banks could use to manage their liquidity. Al-Zadjali said that for the first six months, the limit would be raised to 75 percent, and it would be 50 percent for the following six months. Then the 40 percent limit would apply. “After that they can have local sukuk and they can be building local credits,” Zadjali said at a meeting of Arab central bankers and finance ministers in Dubai. “It’s a definite period, it’s one year...until they set the client base.” Last year, the two lenders raised a combined 100 million rials ($260 million) through their initial public offers of shares, with Bank Nizwa having 150 million WEDNESDAY, APRIL 3, 2013 66.9 rupees after the news before retracing some of their gains to close up nearly 11 percent at 63.3 rupees. Mukesh Ambani’s Reliance Jio is unlisted. The deal will help Reliance Jio Infocomm roll out its high-speed fourthgeneration (4G) services. Mukesh Ambani is planning to establish an ultrafast 4G telecommunications carrier later in 2013. Analysts say sharing fibre-optic networks and other infrastructure such as telecom towers could prove mutually beneficial by helping Mukesh reduce costs at the same time as boosting the fortunes of Anil’s debt-laden group. RCom will have reciprocal access to the optic fibre infrastructure which Reliance Jio will build in the future, the companies said. “Both brothers have a presence in telecom. Their working together makes sense at a time when the cost of doing business is high and the economic environment is tough,” said Sonam Udasi, head of research with IDBI Capital. — AFP Pressure on Oman to raise spending eases State completes infrastructure projects DUBAI: DAMAC Properties, a privately-held Dubai developer, is considering listing its shares on the stock market and has approached banks with proposals for advisory roles as it bets on a recovery in the emirate’s real estate market. The developer has submitted requests to a handful of leading international banks, three sources aware of the plan said, speaking on condition of anonymity as the matter is not public. It would be the first major property firm in the United Arab Emirates to launch an initial public offering (IPO) since the property market collapsed in 2009, after similar plans by familyowned Al Habtoor Group were shelved last year. An IPO by a big Dubai name would also jolt moribund equity markets in the region. The last listing on the Dubai Financial Market index was in March 2009, while the Abu Dhabi bourse has seen only a couple of minor sales since 2008. The IPO plan is at an initial stage and it was not clear whether the listing was planned in Dubai or in another international market. No details on the DUBAI: A general view shows the opening session of the Arab Finance Ministers meeting in Dubai yesterday. — AFP potential valuation for the business was available. DAMAC said a potential IPO is one of the options considered for the company’s future growth but gave no additional details. “As a company of our size and scope, we are continually looking at all growth possibilities and an IPO is one of these routes,” said Niall McLoughlin, senior vice president at DAMAC Properties. Dubai’s property market has recovered gradually in the last one year after a 60 percent plunge in prices as investors fled the emirate following the global financial crisis. “The Dubai real estate sector is pretty hot right now so they would want to capitalize on that sentiment,” said one equity banker, declining to be named as he was not allowed to speak to the media. “They are one of the biggest developers in Dubai - when you’re driving around, you see their billboards everywhere - and the obvious comparison, Emaar Properties, has been doing pretty well recently.” rials in paid-up capital and Al Izz having 100 million rials. Oman’s first sovereign sukuk issue is expected in about a year; the finance minister said earlier yesterday that the issue would not occur within 2013. The rules also state that Islamic banks are allowed to hold a maximum of 30 percent of their net worth in sovereign sukuk, so pressure will remain on the industry to develop other rialdenominated Islamic products to manage liquidity. Islamic banks in Oman have limited investment options partly because the country’s Islamic banking rules essentially ban the use of commodity murabaha, a common tool used by Islamic banks around the world to invest surplus funds. — Reuters Dubai developer Damac plans share listing BEIJING: Swedish furniture giant IKEA’s President and CEO Mikael Ohlsson delivers a speech to university students in Shanghai yesterday on the development of IKEA’s global business. — AFP Emaar Properties’ shares have risen 36 percent year-to-date on the back of increased revenue from hospitality and retail businesses. The developer has approached banks, including HSBC, Deutsche Bank, Morgan Stanley and Goldman Sachs, the sources said. The company is yet to pick an advisor for the proposed float, the sources said. Led by Hussain Sajwani, DAMAC symbolized the flamboyance in Dubai’s property market during the boom years, handing out sports cars and luxury yachts to customers of penthouses and duplex homes. The developer slowed down during the downturn but returned with new projects as Dubai’s real estate market stages a gradual recovery. DAMAC, formed in 2002, has completed 37 buildings and has another 66 buildings under construction across the Middle East and North Africa region. It recently announced a plan to build a $1 billion development in partnership with Viacom Inc’s Paramount Group. — Reuters Egypt taxi drivers storm finance ministry gates CAIRO: Egyptian taxi drivers stormed the gates of the finance ministry in Cairo yesterday during a protest against the terms of loan payments on their cars, security officials said. Other taxi drivers in the protest were upset that the government had not yet replaced their old black and white taxis with the more recent white cars that are equipped with meters. Ministry employees armed with clubs and chairs prevented the drivers from entering the building. Egypt had replaced most antiquated black and white taxis in Cairo with more modern white ones over the past four years, but some older models were not eligible for the program. The new taxis were bought through financing, and many drivers now say they cannot afford to keep up with payments amid increasing inflation. Taxis, relatively cheap compared with Western fares, are one of the main forms of transportation in Cairo. — AFP
Page 1 and 2: SUBSCRIPTION Amir attends operetta
Page 3 and 4: LOCAL Sharp increase in number of s
Page 5 and 6: LOCAL ITQAN Academy moves to new he
Page 7 and 8: WEDNESDAY, APRIL 3, 2013 Indian cou
Page 9 and 10: BAMAKO: The EU began a top-to-toe o
Page 11 and 12: KABUL: As the one-year countdown to
Page 13 and 14: Iranian women jump for a picture as
Page 15 and 16: Athletes get two-year ban MOSCOW: F
Page 17 and 18: Daryl Impey NEW YORK: The photograp
Page 19 and 20: Pizarro dethrones Messi in AP globa
Page 21: Business WEDNESDAY, APRIL 3, 2013 C
Page 25 and 26: MOSCOW: The Russian central bank ke
Page 27 and 28: ALBUQUERQUE: It’s the end of the
Page 29 and 30: WEDNESDAY, APRIL 3, 2013
Page 31 and 32: WHAT’S ON Fifteen Touristic Enter
Page 33 and 34: Classifieds WEDNESDAY, APRIL 3, 201
Page 35 and 36: For labor-related inquiries and com
Page 37 and 38: Nora Ephron’s last play is about
Page 39 and 40: By Ellen Creager It’s sleek, shin

KT 3-4-2013_Layout 1 - Kuwait Times

Create successful ePaper yourself

Delete template?

Save as template?